Launch of KRW Stablecoin

The Democratic Party of Korea proposes the Digital Asset Basic Act

The ruling Democratic Party of Korea has, for the first time, proposed a bill that would allow the issuance of KRW stablecoins.

Min Byung-duk, a member of the Democratic Party and the National Assembly, officially proposed the 'Digital Asset Basic Act' on the 10th, focusing on the allowance of KRW stablecoin issuance and the establishment of a Presidential Digital Assets Committee. At a press conference held at the National Assembly, Rep. Min explained the background of the proposal by stating, "Digital assets are no longer just an experimental tool on the periphery." He continued, "Major countries such as the United States, the European Union (EU), and Japan are leading institutionalization by introducing comprehensive regulations on the issuance, circulation, and trading of digital assets, while Korea still lacks a systematic and comprehensive legal framework."

The Financial Services Commission is also preparing a related bill, aiming for legislation in the second half of this year. An official from the Financial Services Commission commented, "Once the State Planning Commission is formed later this week, coordination is expected to proceed." The bill proposed by Rep. Min is anticipated to be discussed alongside the Financial Services Commission's bill in the National Assembly.

Amid rising expectations for the issuance of KRW-based stablecoins, the Bank of Korea is responding proactively. The central bank will hold a conference on the theme of 'The impact and countermeasures of stablecoins on Korea' on the 1st of next month.

Jo Mi-hyun / Seo Hyung-gyo, reporters mwise@hankyung.com